Alibaba has revealed that it is now slashing its prices by as much as 59 percent for customers "from the US to Singapore." This comes shortly after the company's March 2024 announcement that it would be cutting cloud costs for its Chinese customers by up to 55 percent with the hope of winning back users from rivals including Tencent, JD.com, and Baidu.
“Our latest pricing strategy is designed not only to reward long-term subscribers with more substantial discounts, but also to ensure that businesses can have a stable foundation to develop their long-term strategies when planning and developing their own AI applications,” Selina Yuan, president of the cloud unit’s international business arm, said in a statement.
Bloomberg Intelligence said: "Alibaba’s price cuts for ex-China cloud services affirms a greater focus on revenue growth vs. profitability this fiscal year ending March 2025. Consensus estimates for a two-percentage-point rise in the business’ 2025 adjusted Ebita margin from a year earlier appear overly optimistic."
